Islamabad: Pakistan and Russia have revised and signed the new deal for North-South Gas Pipeline which has been renamed to Pakistan Stream Gas Pipeline since now Pakistan will be contributing the majority of funds for the project – a news source reported on November 19.
An executing company will be established for the project and it will be incorporated in Pakistan as per the agreement between the two countries.
During the discussion, the Pakistan and Russia also negotiated on a project to construct a high-pressure gas transmission pipeline from Port Qasim to Kasur. The pipeline will transport RLNG to the northern half of Pakistan in order to reduce the gas shortage caused by growing domestic and industrial demand.
According to the revised agreement, Pakistan will contribute 74% of the capital for the project acquired through gas infrastructure development cess (GIDC), while Russia will contribute the remaining 26%. Russia will also provide all importable material for the pipeline.
According to the old agreement, Russia was to build own, operate, and then transfer the pipeline to Pakistan after 25 years. In that case, Russia was to meet 85% of the costs while Pakistan had to spend the remaining 15%.